UK benefits from stronger chip sales through distribution

Semiconductor sales through distribution channels in Europe grew by 5.3% to €1.6bn in the second quarter to the end of June, according to DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists).

The UK semiconductor distribution market grew by 7.3% to €131m.

Only Germany and Eastern Europe grew faster than the UK with 11% and 10.2% respectively. Q2 sales in German were €514m.

“Our market seems to have reached a solid growth level in the 5% plus range. Particularly encouraging was the fact that Germany, after a few weak quarters, is back on track and brought in a very healthy 11% increase over CY13,” said Georg Steinberger, chairman of DMASS.

The wider trend is also positive with the first six months of the year 6.6% up on the first half in 2013.

Except for France, Benelux, Nordic and Switzerland, all the major markets grew.

France saw sales slip by 2.6% to €122m, while distribution sales in the Nordic region were down 8.7% in Q2.

Steinberger: “Nordic and Benelux were certainly the weak spots last quarter while Germany regained some of its old strength. Over the course of 6 months, the picture has stabilised somewhat, but some risks remain: France develops below average, Benelux, too, and we do not know yet the impact of the sanctions against Russia in our market, although Russia only contributes 4% to the DMASS Total.”

Component categories with the healthiest growth were LEDs/optoelectronics (13.5%) and discrete components (13.6%).